Americans Keeping Whats Theirs
The IRS has put out information of the continuing tax problem in America. America has a "tax gap", or difference in the amount of revenue that should be gained and that which is actually gained. This gap in 2007 is approximately 300billion dollars, the article asks the reader to think about what could be achieved from this extra money that the government should be receiving. It could go to pay for Katrina damages, the war, or many other federally funded programs. The question arises why do we have this "tax gap"?
The main reason for the gap is that Americans want to keep their money. On average the majority of the gap is a result of the individual American under reporting on the taxes. So is this a black market for taxes? I would say yes because people are benefiting from illegal activity. Is this a moral issue or an economic one? The article argues toward moral, but I think it is an economic issue. People are reacting economically to a government regualtion, and creating the best benefits for themselves by under reporting on their tax forms.
1 comment:
I tend to think that this is a moral issue, and that the economic problem is just a result of the moral problem. For the past few summers while I've been in college, I've been making no more then $6.75 (pathetic I know) at a country club course. When I had received my paycheck every two weeks, I was always shocked at how much money taken out in taxes. This money that was being taken out was money that I really could have used to pay for school loans, car bills, and a phone bill. I try to recoup as much as I possibly can (legally) when filing tax reports at the end of the fiscal year. I don't necessarily blame people for trying to get back some of the money that the government takes away, especially when most of the tax dollars are going to a war that has been unpopular for past few years with no end in sight. If people are unhappy with the way the government has been spending their taxes, then why wouldn't these people try to get back some extra tax money lost and spend it in a way that people believe is better?
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